What is life insurance?
Life insurance is one of the most cost-effective and popular forms of financial protection in Ireland, and it’s easy to see why.
In simple terms, life insurance is designed to help protect your loved ones ones if you die. It does this by paying your dependents a lump sum. This replacement income could help with household bills, childcare and education costs, covering mortgage payments and even your funeral costs.
By easing the financial burden placed on your family at such a difficult time, policyholders can enjoy invaluable peace of mind. In return, you pay a regular premium for the duration of the policy (also called the “term”).
There are a number of types of life insurance policy, each designed to help people with particular needs.
Life insurance quote
How does life insurance work?
Life insurance products can be very straightforward to take out. After speaking with an adviser, you decide the amount of cover you need and how long you need it for. You also choose the premium frequency – monthly, half-yearly or annually. In return, you have the reassurance of knowing that if you die during the term of the policy, your family will receive a cash lump sum.
Why do I need life insurance?
If you’re single with no dependents or debts then you probably don’t need life insurance.
But if you have a partner, a family, mortgage, debts or other long-term financial commitments, then life insurance can be a great help in a difficult time. If you're the main breadwinner in the house, for example, then your family may well rely on your income. How would they cope financially if you were to pass away? Could they afford to pay the mortgage and all of the household bills?
A life insurance policy could pay out enough to meet your mortgage payments and cover household expenses, to ease the financial burden faced when a loved one has gone.
Compare life insurance Ireland
At Hive Insurance Services, we don’t just offer you one life insurance plan. Instead, we search a panel of leading insurers on your behalf, to find you the most competitive premium. To give you added peace of mind, our panel contains some of the biggest names in life insurance, including the following:
Why is life insurance so useful?
If you have a mortgage – the policy could give your family a lump sum to help to pay off your mortgage.
If you're the main breadwinner - the policy could give your family a lump sum to help cover household bills, which eases the stress in an otherwise difficult time.
If you have children – the policy could give your family a lump sum to help to pay for your children’s education, books, uniform, school fees, etc.
If you need to cover funeral costs – did you know that a basic funeral can cost up to €7,500 in Ireland?* And potentially, this sum can be a lot higher depending on individual requirements. Can you rely on your family to cover the costs? If these kinds of figures come as a surprise, then a life insurance policy that covers funeral costs could be your ideal solution.
Source - Royal London Survey, 2018
The cost of your life insurance depends on a number of factors. Here’s a run-down of some important issues that affect the amount you pay for cover:
The more cover you want, the higher your premium.
The older you are, the more expensive your policy is likely to cost.
Your occupation – if you work in a hazardous job, this can affect the size of your premium.
Your hobbies – if you enjoy hobbies that are a risk to your health, like winter sports or rock-climbing, these may well affect your premium.
Your current health. If you smoke or drink more than the recommended amounts of alcohol, or if you have any other long-term health issues, you may find difficulty finding a policy and those that are available will be expensive.
Life Insurance Considerations
While life insurance can be very straightforward to take out, it’s important that you take some time to consider the following:
How long do you need cover for? For example, if you want a policy to cover your mortgage, check how long your mortgage repayments will last. If the policy is to cover your children’s education, think about when you’re expected to pay for school or university costs and how much those costs are likely to be.
How much cover do you need now, and in the future? If you want to protect your family, take a look at your current outgoings and think about how your spending might change over the coming years. For example, if you have children, will they need help getting their first car or funding the deposit on their first house? And what about weddings?
Does my employer offer life insurance? Your employer may offer death-in-service benefit, which pays out a lump sum (normally four times your annual salary) if you die while you are in employment. If you have cover from your employer, you should still check whether this amount is enough for your needs.